IT Firms for simpler tender norms to tap government business

BENGALURU: Indian IT services companies are keenly waiting for a government move to clear a model tender process to tap government business, seen as one of the key measures to boost revenue from domestic market. So far, India revenues contribute between 3% and 10% for large Indian companies such as InfosysNSE -1.80 %, WiproNSE -0.02 %, TCSNSE -0.50 % and Tech MahindraNSE -0.40 %, as they take up projects both in the government and with corporate clients. Nasscom estimates that  domestic IT market to be around $ 28-29 billion in fiscal 2018. The government is the biggest collective spender for IT in India, which technology researcher Gartner estimates to be $8.5 billion in 2018. India contributes between 3% and 10% of revenues for most of the large IT firms. While Infosys, which bagged the technology maintenance work for GST network, garners 3% from India, TCS and Tech Mahindra get nearly 7% and 5% revenues, respectively, from India. From India and West Asia, Wipro receives $801 million of its little more than $8-billion revenue. Rishad Premji, chief strategy officer, Wipro, and chairman, Nasscom, the IT services industry body, in an interaction with ET said the large enterprises in India are becoming technology-hungry and the government piece of the domestic market is huge opportunity that we participate in. He said it can be a “missed opportunity” if India is on priority list of the IT services companies. “So if you ask me objectively, you would be missing out on a huge opportunity for India, if you are not participating in the India story.”

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